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Priority One Realty Inc.14910 125th Street KP N
Gig Harbor, WA 98329
Bank Owned
Should I buy an REO? What is it?
AN REO ( Real Estate Owned ),aka Foreclosure, Bank Owned or Repo property is one that has been through the foreclosure process and is now held by a lending or other financial institution. The current owner may or may not be the institution who foreclosed on the property. An REO can be a good deal, however buyers need to be cautious. REO properties are exempt from the typically required seller disclosure regulations. Institutions may not be easy to work with and may not be willing to adhere to our county or state rules for sellers regarding some aspects of the real estate transaction. Most REO sellers require additional documents to be added to the transaction known as Bank Addendums which negate many legal protections for the buyer. Some REO properties can be a great buy and are in good, move- in ready condition. Unfortunately many REO properties have spent months or even years vacant and neglected during the long foreclosure process. Poor condition can prevent properties from qualifying for lending programs. Ask your loan officer to detail the property condition criteria for your specific lending programs if you are targeting foreclosure properties. Buyers should always protect themselves by hiring an experienced professional home inspector to do a thorough analysis of the property condition. Under the best of circumstances hidden damages or defects may be discovered after closing. Inspections are limited to what the inspector can see. A Realtor with experience in REO transactions, working in conjunction with your lender can maneuver your transaction through the obstacles to a successful closing. We believe that buyers should not limit their property search to Foreclosures or Short Sales, but consider all properties meeting most of their personal criteria.